Gold prices have remained steady near $2,500 after the Federal Reserve’s latest monetary policy minutes suggested the possibility of an interest rate cut. At the time of writing, XAU/USD has recovered from earlier losses and is holding firm.
Gold Steady as Fed Minutes Signal Possible Rate Cuts
The Federal Open Market Committee (FOMC) minutes indicated that most members believe it might be appropriate to ease monetary policy at the upcoming meeting if economic data continues to align with expectations. The minutes highlighted recent progress in controlling inflation and a rise in unemployment, which could justify a 25-basis point rate cut.
The document revealed that officials are becoming more confident that inflation is moving towards the 2% target, while concerns about achieving the employment mandate have increased.
In reaction to the Fed’s statement, gold prices experienced a slight upward movement, while the US Dollar saw sustained losses of over 0.30%. The US Dollar Index (DXY) is currently at 100.99. Concurrently, US Treasury bond yields have declined, with the 10-year Treasury note yield falling four basis points to 3.769%.
